Gamification…HR are slow so do they need help?

One area of HR innovation I am becoming increasingly interested in is in the notion of ‘gamification’. Gamification involves ‘the use of game elements and game design techniques in a non-game context’ (Deterdinget al., 2011, p9).

Whilst gamification is proving popular in many arenas, its use is slow to be adopted in HRM/talent management. This is not surprising. A Spring 2013 study and annual survey of 130 HR executives (the Global HR Barometer survey) by CapGemini Consulting revealed that the overall digital maturity level of HR processes is low and that HR is lagging in the use of digital technologies generally. They found that 75% of HR and talent managers believe their companies are behind the curve in the use of internal and external social networking technologies, with only 26 of Fortune 500 companies offering a mobile-optimized job application process and only 26% of talent acquisition leaders reporting that their organization uses workforce analytics well during the hiring process. Very few organizations have established best-in-class digital processes to interact with current and potential employees.

The CapGemini Consulting report takes a positive stance on gamification, reporting that such techniques incorporating the effective use of digital platforms can dramatically improve learning outcomes, and ‘enhancing employees’ ability to learn by as much as 40%’. NTT Data uses gamification to build critical leadership skills among its employees. Their “Ignite Leadership” game ‘enables employees to experience a variety of leadership scenarios and offers them the opportunity to learn more about new management subject areas and the role they aspire to. It allows them to collaborate online with their peers, get instant feedback and be recognized for their game — all the while increasing their visibility as potential leaders’ (2013, p5). Impressive results have been reported, with the “Ignite Leadership” game leading to a 50% increase in the number of employees taking up team leadership roles, compared to traditional training and coaching methods.

Let us look a little closer, though. NTT Data actually offers gamification processes to clients, so it is hardly surprising that they have success. Here is an item from their web pages:

Strong business performance depends on motivated and engaged stakeholders. That’s why adoption of gamification to boost productivity, encourage collaboration, and problem solve is on the rise. In fact, Gamification uses game design principles to modify or drive employee or customer behavior through meaningful incentives, a sense of purpose, and fun. Yet, for gamification to be successful, organizations must have clearly defined business objectives and a roadmap for application deployment and adoption.

NTT DATA can help. Our gamification team, made up of game designers, application developers, and behavioral psychologists, creates highly engaging experiences that can change the game in core areas of your business, including IT, finance, HR, and marketing.
We combine proven experience in enterprise IT strategy and development with innovative and creative insights about how to change behavior using game mechanics, such as leader boards that encourage friendly competition, points and rewards that motivate employees and customers, and avatars that encourage collaboration.

We work with you to plan and execute your gamification strategy, from objective-setting, game design, and proof of concept to the development and hosting of your gamified application, using our Ignite Game Platform.

Ignite is a robust and configurable cloud-based gamification platform that enables us to quickly configure and host a gamification solution that maximizes ROI for your organization.

So, once again, HR/talent managers behind the curve? We know there are reasons: HR is always seen as an on-cost so getting funds for innovation is difficult; current HR systems are not integrated well to other organisational systems; senior management get very nervous about social media and other technologies like gamification impacting on the employer brand and lack of data drive insights as the norm preclude innovative development of technologies for HR/TM (see CapGemini report for more detail, 2013, p6+). As we can also see from NTT Data’s blurb, developing HR innovation systems in areas such as gamification may revolutionise performance management and appraisal and other areas of talent management, but it takes a highly specialised, hybridised disciplinary team to carry out the design, development and implementation work.

REFERENCES

CapGemini Consulting (2013) ‘Using digital tools to unlock HR’s digital potential.’
Digital Transformation Research Institute, dtri.in@capgemini.com. Accessed 5 February, 2014 at http://www.capgemini-consulting.com/resource-file-access/resource/pdf/digitalhrpaper_final_0.pdf

Deterding, S., Dixon, D., Khalled, R. and Nacke, L. (2011) ‘From Game Design Elements to Gamefulness: Defining Gamification’, in MindTrek ’11 Proceedings of the 15th International Academic MindTrek Conference: Envisioning Future Media Environments, 28-30 September 2011, Tampere, Finland, pp. 9-15.

NTT data, company web pages on gamification at: http://americas.nttdata.com/Services/Services/Application-Development-Management/Application-Development-Management-Offerings/Offerings/Gamification.aspx

Salcu, A.V. and Acatrinei, C. (2013) Gamification applied in affiliate marketing, Case study of 2Parale. Management & Marketing Challenges for the Knowledge Society 8 (4) pp.767-790.

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Why your identity will soon be a total construction..

IamFragmented

I read this on TLNT Daily’s email today in their article called ‘9 ways HR and recruiting technology will evolve over the next 4 years’ and it was pretty chilling:

Social capabilities integrated into the platforms

When a candidate applies for a position, a HR manager or hiring manager will see the application and their social profiles as an integrated aspect of their application. For example, it will show what company the candidate worked at, the recommendations they received while at that position from his or her LinkedIn profile, recent tweets, and Facebook wall posts. (by Sudy Bharadwaj, Jackalope Jobs).

Go and visit your Facebook pages… have a Spring clean!

Carole

What incentivises you to get out of bed to go to work in the morning?

Why we work and our motivation to work relates to satisfaction of both intrinsic and extrinsic elements to satisfy ours needs at work and these are different according to personal circumstances. Clearly, financial reward is paramount if we have no other sources of income and there have been some stunning examples lately of financial rewards. For example, Facebook’s financial rewards to its employees! The company granted about $796 million in restricted stock units to employees.

NON-FINANCIAL INTRINSIC ELEMENTS THAT MOTIVATE US TO WORK

But people want more from work than money and it is argued that incentive plans should play to the intrinsic need of the employee rather than some external driver.  For example, software engineers are motivated by working with the latest technology in meaningful projects where they can gain the respect of their peers (see http://www.wisebread.com/incentive-plans-always-go-awry). Common non-financial intrinsic rewards cited by people to make them more motivated at work include:

  • Personal achievement opportunities, such as gaining personal fulfilment for jobs well done and  feeling as if they are contributing to something larger than themselves and to achieve personal missions they accomplish through meaningful work.
  • Social elements, such as the camaraderie and interaction with customers and co-workers
  • Career opportunities for advancement and to accomplish life career goal
  • Interest in the work itself, perhaps making something of value to customers or serving customers
  • Opportunities for personal growth though learning, training and development as well as through increased responsibilities at work.
  • The giving of personal time and appreciative attention from the supervisor is one of the most cited by staff as most rewarding and motivational for them at work. We want to be valued for a job well done by those we hold in high esteem. Being patronised or demeaned is one of the greatest turnoffs – and it only needs to happen once. There is much research done on those ‘small moments’ which negatively impact on a working relationship.

Motivation is individual and diverse and sometimes having a positive experience of one of those things can be offset by having a negative experience in another area.

For example, if someone has five of those motivational factors on the above list but their supervisor is not appreciative of their output.

WHAT PEOPLE NEED FROM THEIR WORK TO ENSURE THEY ARE MOTIVATED

Given that what people want from work is dependent on the organisational context, the situation, depending on the person, their needs and the rewards that are meaningful to them, there are a number of elements known from research about what people need to have in order to feed their motivation to work:

  • We need to know we control our own work: by being allowed to have an influence on organisational decisions, by having clear and measurable goals; knowing that we are responsible for defining and completing key task and being recognised for achieving these goals.
  • We want to be communicated with on both small and important matters in a timely way: including understanding the reasons for decisions made by managers; opportunities to participate in meetings and project opportunities and understanding where the organisation is and how our accomplishments meet those.
  • We want to be given opportunities for personal growth and development: this includes training and development; clear career paths; being included in succession planning and experiential learning.
  • We want our managers to lead us well: People want clear expectations that provide a picture of the outcomes desired with goal setting and feedback and an appropriate structure or framework.

INCENTIVES AND RECOGNITION FOR EMPLOYEE MOTIVATION 

Why provide employee incentives?

It is said that engaged, motivated employees work harder, smarter and are more productive. A well structured employee incentive scheme can aid employee retention by engaging them and elevating their productivity and service levels to new heights but it can also help a business attract new employees by enhancing the brand image – engaged employees will talk positively about their workplace.

TYPES OF INCENTIVES COMMERCIALLY AVAILABLE INCLUDE:

  • Supercheques or vouchers which can be cashed in at shops
  • Landmark Awards designed especially for loyalty, long service and other special occasions.
  • Money – pre-paid visa cards
  • menu systems incorporating gift vouchers and gifts from categories such as food and drink, jewellery and watches, sports and leisure, photography, sound and vision and a comprehensive selection of lifestyle products.
  • Technology products, such as ipads, iTunes cards
  • Adrenalin-packed experiences such as Bungee jumping, helicopter and Warbird flights, Yacht, powerboat, RIB and Zapcat thrills or driving excitement in supercars, rally cars and off-road vehicles.
  • Enhancing mind, body and soul: such as eco retreats, theatre breaks and casino experiences; Makeover treatments, spa days and detox therapies and popstar singing experience and Champagne tea at somewhere like Blenheim Palace.

DOWNSIDE FOR THE WINNERS

  • Many incentives such as food negatively impact on health plans of employees and requests to stay and work on impact on health and well-being. Downside: ‘Why does my boss buy me chocolates as an incentive when I have just begun a health diet?’
  • Others are innovative but with potential to fail?:
One organization incentivise staff to get their timesheets filled out and turned in on time – the digital ‘Drink Time Sheet’.  The idea? Set up a refrigerator full of free beer, but have it electronically locked, and linked to the office’s timesheet system. Once all the week’s timesheets are submitted, a siren sounds, the refrigerator unlocks, and the staff can celebrate the end of the week with a few Friday beers. http://steveboese.squarespace.com/journal/2012/5/4/timesheets-incentives-and-five-oclock-beers.html

Here, no account is taken of those who do not drink alcohol for faith or any other reasons so this can be alienating. It can also exclude those who work part time, have a negative impact on health and maybe mean employees are over the limit when they drive home.

THE DON’TS OF EMPLOYEE INCENTIVE SCHEMES

CBS News reported on four ways in which incentive schemes can go wrong:

1. Don’t incentivize workers to do things they feel they cannot do. If staff are already working hard to sell the firm’s products but there is no improvement then a review of sales approach or a review of the commercial viability of the product has to take place rather than trying to incentivise staff to sell more. Goal: Sell more. Result: Salespeople look for new employment.

2. Don’t use incentive schemes to address problems managing poor performers. Sometimes there are situations at work where a few people are not behaving as expected. Rather than go to the offenders, management may set up an incentive scheme which aims to get everyone working in the required way but instead institutes new rules that negatively impacts upon everyone.

3. Don’t try and incentivize workers to do something that they believe violates their values. For example, rewarding doctors for seeing more patients de-professionalises doctors.  Many see spending less time with patients to move them through a production process means not practising good medicine. Some may deliberately see fewer patients. Goal: Increase productivity (number of patients seen per doctor). Long term result: Lower productivity.

4. Don’t introduce an incentive plan as a way of getting an unpopular new strategy in. For example, if people have joined a company thinking they are doing one type of work where they can work in their home town then an incentive plan is introduced to do work on the other side of the world. Goal: work abroad. Result: No increase in working abroad and low motivation among the sales staff.

WAYS IN WHICH EMPLOYEE RECOGNITION CAN SUCCEED

Employee recognition should occur throughout the year.

Employee of the month recognition programmes can cause alienation and discontent for those who are working hard and are not being publicly rewarded. Everyone who contributed to a success should be rewarded. Example: one firm had a high turnover. The solution: Use non-cash forms of employee recognition to recruit and retain employees. Employees were rewarded for referrals of qualified employees who stayed more than three months. Daily recognition rewards were issued for being on time, for opening the store in the owner’s absence, and for outstanding customer service. Employee retention increased during the first six months. The owner’s store became identified locally as ‘the best place to work.’

Employee recognition approaches and content must also be consistent. … but not become expectations or entitlements.

Be as specific as you can in telling individuals exactly why they are receiving the recognition. .. specific feedback in employee recognition reinforces what you’d like to see the employee do more of.

Offer employee recognition as close to the event you are recognizing as possible. When a person performs positively, provide recognition and a thank you immediately to capitalise on the employee feeling good at that time and enhancing positive feelings and raising confidence.

Communicate the details of the incentive scheme…from the launch of the programme and throughout to the end.

Measure the results of employee incentives. for example, through increased performance.

Reward managers for providing a supportive environment.

WHEN EMPLOYEE INCENTIVES GO WRONG

Firms should always deliver on incentive promises. One motivated Hooters employee in America got less than she bargained for. She entered a competition to sell the most amount of beer to customers thinking she would get a new Toyota car, she won and was taken out to the car park to be presented with a Star Wars toy. She is currently suing her employer.

Watch out for employee playing games with the system

Most incentive plans involve numbers, increased numbers of sales, increased number of cars off the production line etc.  All such production targets can be ‘gamed’, for example selling something on the grounds that it can be cancelled later or getting someone else to do the selling for you for a smaller bonus.

Incentives can discourage risk taking, creativity, and taking on challenges because the task is now just something that stands in the way of gaining the prize

Incentive schemes should not set employee up against each other and cause rifts in the workplace. Setting up employee competition can backfire and can rupture relationships by destroying trust.

Employee failure to win a reward can be demotivating and impact on performance.  

How good employee recognition programs work – can your company do it?

  • Employees work best if given concrete goals and objectives that they and their supervisors can both measure and manage. Clear, understandable criteria for recognition are important.
  • Generation theory and life cycle theory warns us that we need to understand what motivates each employee. What motivates  a Gen Y student part-timer struggling with tuition fees isn’t what a full-time career track Baby boomer store manager or line manager views as recognition (See the CIPD/Penna research ‘Gen Up’).
  • Good employee recognition programs allow for many winners.
  • Successful recognition awards are often individual surprises rather than multiple awards saved for an announced event. Instead of employees focusing on winning an award, they are focused on just doing well at their jobs.
  • All employees at all levels should be recognized for good work, including supervisors and managers.
  • Effective programmes don’t have to be elaborate and complicated to operate successfully. Once criteria are set and recognition awards match employee values, administration can and should be simple.
  • Versatile recognition programs include tangible and intangible awards for all types of employee successes, from concrete and visible contributions to subtle influences on the company’s successes.
  • To be effective, acts of employee recognition should come from the managers who hire, fire, appraise, coach, and correct employees on a daily basis. Recognition programs can’t be left to top executives at boring monthly meetings.
  • Top executives who offer simple, verbal expressions of gratitude are recognizing employee performance with as much impact as physical rewards offer.

OFTEN OVERLOOKED RECOGNITION OPPORTUNITIES

Here are examples of five often-overlooked recognition opportunities:

  1. Relationships. Recognise customer relationship building as well as customer sales. Building strong relationships with prospective clients can lead to future sales, ongoing business development, and client retention when they do close the deal.
  2. Teamwork. Don’t overlook hidden “stars” within your support staff. Ignoring the people who helped sales is a clear way to make team players feel underappreciated and become resentful.
  3. Effort. Recognise frequency of sales as well as major amounts. Not every new account brings in the kind of revenue that extremely large accounts do. Yet it takes just as much effort, if not more, to close many smaller accounts, and juggling multiple accounts is also time consuming.
  4. Opening Doors. Recognise and/or rewarding the person who opened the door in the first place to avoid feelings of resentment that their time and effort wasn’t appreciated. Sometimes a sales visit doesn’t lead to a sale for your particular department, but maybe it opens a door for someone in a different department of your company and leads to them making a sale.
  5. Loyalty. Recognise someone’s ability to retain clients to encourage behaviour changes that will benefit your entire organization. Whilst bringing in new business is often rewarded, staff are rarely praised for retaining clients. Many employees, in customer service, administration and accounts who work hard every day, often going the extra mile or two, just to keep those existing customers happy.

(Ref: http://atlastraveltalk.com/2012/05/08/rewarding-the-process-not-just-the-results-5-overlooked-opportunities/)

INCENTIVISATION LINKS TO STAFF RETENTION

It can cost two to three times more to replace a worker than to retain the employee. For example, Taco Bell found that 20% of the stores with the lowest turnover rates enjoy double the sales and 55% higher profits than the 20% of stores with the highest employee turnover rates.

Employee recognition is a thank you for doing something that benefits the goals of the organisation. 

Employee of the Month programs can fail because it is exclusive and often the same people win over and over again.

What do you incentivise? Long service or good performance?

SIX ELEMENTS FOR SUCCESSFUL IMPLEMENTATION OF AN EMPLOYEE INCENTIVE PROGRAMME

There are six elements said to make a successful implementation of an employee incentive programme:

  1. Have clear objectives about what you are trying to achieve.
  2. Draw up a budget for short and medium term.
  3. Allocate responsibilities for the scheme.
  4. Decide who the incentive scheme is aimed at.
  5. Allocate timesales for start and end date of the scheme so that participants know how long they have to achieve their goals.
  6. Decide on which incentives are to be used.

THE BEST INCENTIVE A MANAGER CAN OFFER THEIR STAFF IS TO SAY THANK YOU… OFTEN.  SUCH ‘SMALL MOMENTS’ CAN MEAN SO MUCH.

It also doesn’t harm to give an  award but the research suggests don’t make this reward too large or something that will take employees away from what they should be doing and engaging in gaming instead. People like to receive medals and trophies as they have lasting meaning.  Look at the Olympic athletes!

REFERENCES

Kohn, Alfie ‘Punished by Rewards’. Mariner books   http://www.amazon.com/dp/0618001816/ref=rdr_ext_tmb

Hello world!

Hello world!.  Welcome to my blog. I am Professor of HR Innovation at Nottingham Business School (NBS) and my research interests lie in two main areas: talent management and the use information systems for people management processes in organisations. I am an interpretive researcher with a particular interest in the notion of identity: personal, professional and social. Follow me on Twitter,  at @HR_Innovation where I try to keep my followers informed about various new applications of technology which might be useful in their working lives as managers, consultants, students and others interested in keeping up to date in new areas of people management. My other identity is as Head of Professional Doctoral Programmes at NBS and this role enables me to engage in a job I love – supporting professionals in a journey towards intellectual capability resulting in a Doctorate in Business Administration. It’s a long way from where I started… wiring up telephone boxes in a factory in the North of England…

“Is this all there is, Mavis?”. “Yes, Florrie, we’re Northern and that’s all there is to it!”

Carole Tansley